BUA Group, one among Nigeria’s main manufacturing conglomerate has assured Nigerians that its sugar export-focused undertaking in Port Harcourt, will checkmate arbitrary value hike within the sugar business and create jobs for Nigerians.
This disclosure was contained in a letter written by Abdulsamad Rabiu, the Chairman and Founding father of the BUA Group, to the Minister of Trade, Commerce and funding, Niyi Adebayo.
The letter was a response to the Minister’s request for info on the standing and operations of the BUA Sugar Refinery on the Bundu Free Commerce Zone in Nigeria, noting that the Minister’s demand for extra info was triggered by one other letter collectively written by Aliko Dangote of Dangote Industries and John Coumantaros of Flour Mills Nigeria Plc.
In response to this, Abdulsamad defined that what BUA is doing within the Sugar Trade is authorized and throughout the confines of the regulation. In keeping with this, the billionaire defined that the one approach BUA’s export-focused undertaking will have an effect on Nigerians is that Nigerians pays decrease costs for sugar.
He famous that the corporate had spent over $250 million on the Port Harcourt undertaking, which presently employs over 1,000 Nigerians. In keeping with this, any transfer to close the undertaking down or stifle its operations will value jobs and exert pressures on the nation’s financial system.
In accordance with him, the Group’s undertaking in Port Harcourt is principally for exports, nevertheless, the corporate is allowed to take action below the Nigeria Export Processing Zones Authority (NEPZA), because the NEPZA Act upon which the undertaking is predicated, offers the permission to course of, add worth, and export on the identical time.
Therefore any transfer to tamper with the present approval of the sugar undertaking in Bundu Free Commerce Zone may have a major financial impression able to eroding traders’ confidence below the Export Processing Zones (EPZ).
What it’s best to know
- Nigeria’s sugar refining capability had elevated to three.4 million metric tons every year from 2.75 million metric tons every year. This reveals that the refining capability elevated from 170% during the last 12 months’s import quota to over 210%.
- Abdulsamad in his letter revealed that BUA remained the one firm of the three dominant gamers (Dangote Sugar Refinery and Flour Mills), spending severe cash and in search of to finish its BIP undertaking by 2022.
- BUA in whole has three sugar holdings in Nigeria, the primary one is a 720,000 mt sugar refinery in Apapa, Lagos, which commenced operation in 2008 and is roofed by the Backward Implementation Programme of the Nationwide Sugar Grasp Plan.
- The second is a 20.000-hectare Lafiagi Sugar Plantation and Ethanol Manufacturing Advanced (Additionally coated by the NSMP), whereas the third is the export-focused sugar refinery on the Bundu Free Zone in Port-Harcourt, Rivers State.